The Motley Fool Discussion Boards

Previous Page

Financial Planning / Tax Strategies


Subject:  Stock for Huge Downpayment Date:  3/19/2001  12:57 PM
Author:  Cascadia Number:  48679 of 127549

In order to help our daughter and son-in-law purchase a very middle class house in a very expensive part of the US we are considering selling $200,000 in stock in order to pay her house down to a level that they can carry the mortgage on. (a 300,000 house down to 100,000 basically).

The stock is largely Boeing which we feel is down temporarily and which we expect to recover at least 10% over the next 6 months to a year. The house starts construction this month though and we were considering a mortgage against the stock instead? I read once on a brokers page about this but can't find it again and would love some links if people have them to major companies that do this. I have heard that its essentially very high risk and the same as a margin loan but we are willing to assume a fair level of risk if it means saving the taxes (I think about 25,000 dollars which is a very nice car frankly). Even though this would all be long term gains I hate to pay taxes if we can avoid them and would like to keep the money in the market and not in a house.

What are the best options? We are both retired (67 and 65) and don't need any income from any of our investments to live on (hefty pension) but have 2 other grown children with families that we would like to start to move some assets to in a few years.

Any advice would be appreciated.
Copyright 1996-2018 trademark and the "Fool" logo is a trademark of The Motley Fool, Inc. Contact Us